The Belizean Dollar: Currency Of The Caribbean Coast

The Belize dollar (BZD) is the official currency of Belize, which is abbreviated with the dollar sign $, or BZ$ to distinguish it from other dollar-denominated currencies. The currency code for Belizean dollars is BZD. The Belizean dollar is divided into 100 cents and is pegged to the US dollar at a fixed rate of BZ$2 to US$1.

Belize Dollar exchange rate

The Belize dollar (BZD) is the official currency of Belize. It is divided into 100 cents and is normally abbreviated with the dollar sign $, or BZ$ to distinguish it from other dollar-denominated currencies.

The Belize dollar is hard-pegged to the US dollar at a fixed rate of BZ$2 to US$1. This means that the Belize dollar is worth half of a US dollar. The US dollar is also widely accepted in Belize, and many businesses accept it.

The Belize dollar has a history that dates back to the 19th century when British Honduras (now Belize) operated using the British sterling monetary system. However, in the middle of the 19th century, the silver peso of neighbouring Guatemala drove the British currency out of circulation. As a result, a new currency was introduced into British Honduras based on the US dollar, bringing it into line with Canada.

Today, the Belize dollar is used throughout Belize and can be exchanged at most banks and hotels. ATMs in Belize usually accept foreign cards, and credit cards such as MasterCard, Visa, and AMEX are widely accepted.

It is important to note that the Belize dollar is generally worthless outside of Belize, and it is recommended that expats and Belizeans keep their foreign exchange in a bank outside of the country.

Belize Dollar history

The Belize dollar (BZD) is the official currency of Belize. It is often abbreviated with the dollar sign $, or BZ$ to distinguish it from other dollar-denominated currencies. The Belize dollar is divided into 100 cents and is pegged to the US dollar at a rate of 1:2.

Prior to its independence, Belize used the British Honduras dollar, British pounds, and Spanish dollars at various points in its history. The Spanish dollar was the currency in circulation in Belize between 1765 and 1825. In 1825, an imperial order-in-council was passed to introduce British sterling coinage into all British colonies, including British Honduras (as Belize was then known). However, the unrealistic exchange rate between sterling and the Spanish dollar led to the initiative being largely unsuccessful.

In the mid-19th century, British Honduras operated the British sterling monetary system, similar to Jamaica and Bermuda. However, in 1873, an international silver crisis led to the silver peso of neighbouring Guatemala driving out British currency. As a result, British Honduras adopted a new currency based on the US dollar, bringing it in line with Canada. In 1885, 1-cent coins were introduced, followed by higher denominations in 1894, including the first issue of banknotes by the government.

When the United Kingdom abandoned the gold standard in 1931, the British Honduras dollar maintained its attachment to the US dollar. During World War II, British Honduras joined the sterling area while still maintaining its fixed exchange rate with the US dollar. In 1949, the devaluation of the British pound caused a sudden increase in the value of the British Honduras dollar relative to the pound, leading to protests and the devaluation of the British Honduras dollar to 70 US cents.

In 1967, the British Honduras dollar again devalued in sympathy with the British pound to 60 US cents. In 1973, British Honduras was officially renamed Belize, and a new family of notes was introduced with the new country name. The Monetary Authority of Belize was established in 1976 and took over note issuance. In 1978, the link to the British pound was abandoned, and the Belize unit was once again pegged to the US dollar at a fixed rate of BZ$2 = US$1, which continues to this day.

Belize Dollar denominations

The Belize dollar is the official currency of Belize. It is abbreviated to BZD and often represented by the symbol BZ$. The Belize dollar is divided into 100 cents.

The Belize dollar was first issued in 1974, three years after the country was renamed from British Honduras. It replaced the British Honduras dollar, which had been in use since 1885.

Banknotes

The following banknotes are in circulation:

• $2
• $5
• $10
• $20
• $50
• $100

Coins

The following coins are in circulation:

• 1 cent
• 5 cents
• 10 cents
• 25 cents
• 50 cents
• $1

Belize economy

Belize has a developing free-market economy. The country is an upper middle-income country in Central America with a population of 405,000 (2022 figure) and a gross domestic product (GDP) of $2.5 billion. As a member of CARICOM, Belize benefits from access to members' markets and trade agreements. Belize has an export-oriented economy, with tourism being the most important source of foreign exchange, followed by agricultural exports.

Belize's economy was historically dependent on forestry, with logwood being the country's initial main export. However, the industry declined due to the development of synthetic dyes in Europe and the slow regrowth rate of mahogany trees. By 1960, the combined value of sugar and citrus exports had exceeded that of timber. Today, the country's primary exports are citrus fruits, sugar, and bananas.

Belize's economy is also supported by the cultivation of newly discovered oil in the town of Spanish Lookout. Additionally, remittance inflows provide substantial support for consumption. The country's trade deficit has been growing due to low export prices for sugar and bananas.

Belize's domestic industry is limited by high-cost labour and energy, as well as a small domestic market. Tourism attracts the most foreign direct investment, with significant investment also in the energy, telecommunications, and agricultural sectors.

The service sector has been the largest contributor to the country's GNP since the early 1980s, surpassing the agriculture, forestry, and fishing sectors. The tourism industry has grown rapidly, with the number of visitors increasing fivefold from the late 1990s to the mid-2000s. Belize's many Mayan ruins, diverse ecology, and the Belize Barrier Reef (the largest in the Western Hemisphere) attract tourists to the country.

Belize's economic performance is susceptible to external market changes, and the country relies heavily on foreign trade with the United States as its primary trading partner. In 2000, the US accounted for 48.5% of Belize's total exports and 49.7% of its imports. Other major trading partners include the European Union, Canada, Mexico, and other Caribbean Community (CARICOM) member states.

Belize Dollar in relation to US Dollar

The Belize dollar (BZD) is the official currency of Belize, where it is abbreviated with the dollar sign $, or BZ$ to distinguish it from other dollar-denominated currencies. The Belize dollar is divided into 100 cents and is pegged to the US dollar at a fixed rate of BZ$2 = US$1. This means that US$1 is worth BZ$2, or that BZ$1 is worth US$0.50.

The Belize dollar has a long history that is closely intertwined with the British sterling and the US dollar. In 1825, an imperial order-in-council introduced British sterling coinage into all British colonies, including British Honduras (now Belize). However, the unrealistic exchange rate it set between sterling and the Spanish dollar led to its failure. In 1838, new legislation corrected the rating, but by then sterling was already well-established in British Honduras. In 1873, an international silver crisis drove British currency out of circulation in British Honduras, and a new currency was introduced based on the US dollar. This new currency was tied to the gold standard, as the US dollar and Canadian dollar were at the time.

In 1931, when the United Kingdom abandoned the gold standard, British Honduras retained its attachment to the US dollar. During World War II, British Honduras joined the sterling area while still maintaining its fixed exchange rate with the US dollar. In 1949, the British pound was devalued, causing a sudden increase in the value of the British Honduran dollar relative to the pound. This led to protests and a devaluation of the British Honduran dollar to 70 US cents. The British Honduran dollar devalued again in 1967, this time in sympathy with the British pound, to 60 US cents. Finally, in 1978, the link to the British pound was abandoned, and the Belize unit returned to being pegged to the US dollar at a fixed rate of BZ$2 = US$1, where it remains today.

Today, the Belize dollar is hard-pegged to the US dollar at this rate, although a parallel informal market offers a slightly higher exchange rate of BZ$2.05 for US$1. Visitors to Belize are advised that they do not need to exchange their US dollars for Belize dollars, as the latter are generally worthless outside of Belize. Additionally, many businesses in Belize accept US dollars directly. However, those entering Belize must declare any currency or financial instruments exceeding a total value of US$5,000.

Frequently asked questions